South Sudan: Nile Petroleum, Glencore form joint venture
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July 13, 2011 (JUBA) - South Sudan’s Nile Petroleum Corporation
(Nilepet) has, in a bid to boost the oil industry, entered into joint
venture with Glencore International; a Swiss-based public company
involved in production, processing, refining and transporting energy
products.
The move, according to Mangok Kali Mangok, Nilepet’s managing director
seeks to ensure that crude oil entitlements from the company, and the
Republic of South Sudan in general, find a market in the international
arena.
“The joint venture will help the Republic of South Sudan develop its
national oil company through skills transfer and training and will be
responsible for marketing the crude oil from July 09 onwards,” Mangok
said in a statement.
Partnership with Glencore, he added, will enable the former to invest
in oil infrastructure in newly independent South Sudan as well as
raise international financing that will benefit the new nation.
The development comes nearly five months after South Sudan’s Energy
and Mining ministry and Petroliam Nasional Berhad (PETRONAS), a
Malaysian-owned oil and gas company signed a two-year memorandum of
understanding (MoU) aimed at boosting mutual cooperation between the
two parties.
The MoU, signed in Juba, South Sudan’s capital, outlined the overall
principles of cooperation in the oil and gas sector between the
government and the Malaysian oil giants, creating an avenue for
exploiting existing business opportunities.
In addition, the agreement further creates a platform for the two
parties to set up frameworks for sharing experience and expertise in
the management of petroleum resources through capability building and
other training programs.
In January 2008, Petronas, got permission from South Sudan’s
government to begin oil exploration in block 5B, after agreeing to let
Moldova’s Ascom Group keep part of the concession, an official said.
Following the signing of the Comprehensive Peace Agreement in 2005
peace deal, the Sudanese government in Khartoum mediated with oil
firms with overlapping claims.
In July last year it was agreed that Petronas could keep its share in
Block 5B provided it allowed Ascom, already working in the area, a
share in the venture.
Block 5B, which lies in Unity and Jonglei states, covers more than
20,000 square km (7,723 sq miles), is operated by the consortium WNPOC
(White Nile Petroleum Operating Company) led by Petronas and including
India’s ONGC Videsh, Sudan’s state-owned Sudapet and Nilepet and
Sweden’s Lundin Petroleum.
(ST)
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